3 Celsius CEOs Pocketed $17 Million Before The Company’s Bankruptcy

Celsius’s trio of CEOs including former chief executive Alex Mashinsky, former CSO Daniel Leon and CTO Nuke Goldstein reportedly withdrew $17 million from escrow between May and June before the company freeze client’s money and then declared bankruptcy.

As recently reported by Coindesk, ex-CEO Alex Mashinsky and ex-CSO Daniel Leon and CTO Nuke Goldstein pulled bitcoin, ether, USDC and CEL holdings from their custody accounts in May, before the company suspended all customer withdrawals.

In the new Financial Affairs Report filed on October 6 by Celisus, it was found that former CEO Alex Mashinsky and former CSO Daniel Leon had largely withdrawn funds from custody accounts in the form of bitcoin (BTC), ether (ETH), USDC (USDC) and CEL (CEL) tokens. Meanwhile, the remaining 10+ directors did not make any withdrawals during that time.

Mashinsky withdrew about $10 million in cryptocurrency in May 2022. Leon withdrew about $7 million (and an additional $4 million worth of CEL denoted as “collateral”) between May 27 and May 31.

It originally appeared that current CTO Nuke Goldstein an additional $13 million (and additional $7.8 million worth of CEL denoted “collateral”). However, matching transactions through different affiliated entities suggest that in reality, Goldstein moved his holdings to and from different accounts, all maintained with Celsius.

The net amount he took out from his personal account is around $550,000, mostly in ETH. A related party of Goldstein, Bits of Sunshine LLC, a combined $5.7 million in May 9, 11, 13 and 25 from a custody account. The majority of these funds were likewise, into his personal account at Celsius which he put up as collateral.

This latest report is considered as evidence to corroborate the information that former CEO Alex Mashinsky withdrew 10 million before Celsius went bankrupt reported by the Financial Times earlier this week.

Celsius filed for Chapter 11 bankruptcy protection in July after it stopped all user withdrawals citing “extreme market conditions” a month earlier.

Now Celsius is about to enter an auction, FTX is a leading candidate for Celsius acquisition. Users of this bankrupt crypto company are struggling to get their deposits back. This process will become more difficult when the session takes place.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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